Wells Fargo report highlights weak corporate governance at DryShips

Wells Fargo report highlights weak corporate governance at DryShips

George Economou’s widely criticised series of stock manoeuvres at DryShips has earned him bottom spot on an annual poll of corporate governance excellence among listed shipping firms.

DryShips was deemed the worst listed company for corporate governance in a regularly updated poll carried by investment bank Wells Fargo and its equity analyst Michael Webber.

This year alone, DryShips has pushed through three reverse stock splits and its share price has fallen off a cliff. Indeed, $100,000 invested in DryShips stock a year ago would now be worth less than $10.

DryShips’ shares closed in New York down another 12% yesterday on $4.45. Economou’s handling of DryShips has seen him come in for sharp criticism by readers of this site as well as across share trading platforms and via social media.

The Wells Fargo list highlighted Greek shipping’s questionable corporate governance with DryShips being joined in the bottom 10 by a host of other well known Greek names, namely Danaos, StealthGas, Tsakos Energy Navigation (TEN), Euroseas, Safe Bulkers, Diana Containerships, Diana Shipping, Costamare and Capital Products Partners.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. George
    May 18, 2017 at 3:14 pm

    first of all, you are one month late
    secondly, someone of the two [splash or fairplay] is mistaken
    Not allowed to paste link but check same story from fairplay on apr-19 that says
    that Danaos was not included in the sample
    as we have no knowledge of the report itself, perhaps u could investigate and amend if needed?